BUDGET DEFICIT AND CURRENT ACCOUNT BALANCE IN NIGERIA (1986- 2010)

ABSTRACT

This work is based on the appraisal of budget deficit and current account balance in the Nigeria economy between the periods of 1986-2010. The broad objectives of the study isto examine the impact of budget deficit and current account balance in the Nigeria economy, trend of budget deficit and current account balance and also the impact of selected macroeconomic variables on the current account. The potency of budget deficit in improving current account balance in Nigeria need to be emphasized upon by policy makers with caution.The ordinary least square (OLS) technique was adopted for the evaluation of data obtained and the researcher used PC-GIVE 8.00 software package. The result of the study shows that government expenditure on education has a positive impact on budget deficit while unemployment and government expenditure on health has negative impact on budget deficit, based on this finding, recommendations were made to enhance proper policy intervention by government and policy makers.

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Budgeting generally can be said to be a control device in an organisation designed to ensure that activities pursued within the budget period are such that contribute to the achievement of the organisation’s objectives.

For government, its objectives are the provision of services and improvement of the living standard of the people.

Budget deficit is one of the most discussed economic issues in Nigeria. Baiter (1985) states that deficit are bad, always and everywhere, regardless of the country circumstance. There is a common believe among economist, that budget deficit priori harmful for the total function of economy.

The budget deficit arises when a government outlays exceed revenue for that fiscal year. In an attempt to reduce large budget deficit, government usually recourse to deficit financing namely;

i)   internal and external borrowing

ii)      raising the level of taxation iii)increasing money supply

iv)Draw down from government saving or what is called foreign reserve A deficit is financed from government borrowing which may result to....

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Item Type: Project Material  |  Attribute: 50 pages  |  Chapters: 1-5

Format: MS Word  |  Price: N3,000  |  Delivery: Within 30Mins.

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